The $9 trillion black hole
This is one of the most amazing videos I’ve ever seen. The inspector general of the Federal Reserve, in charge of auditing the Fed’s activities, doesn’t know-
* Who got the $1 trillion in direct Fed payments during this bailout period
* Whether it’s true or not that, as Bloomberg says, the Fed has also entered into “$9 trillion of off balance sheet transactions”, and, if so, the risk of those transactions, the counterparties and on and on.
After you watch, think about the opportunity for the Republican Party. I know it’s not election season, but sometimes it’s critical to create public perception about the party’s views on what is going on with such critical transactions. To run a few ads showing the inspector general fumbling around, and to ask “Where’s the Administration”, would be brilliantly good politics and an enormous, consequential public service. This is the kind of thing that Bill Clinton did in late 1995/early 1996. It helped to shape the election dialogue to ensure his re-election.